If your organization has legally incorporated and is operating as a nonprofit, filing your nonprofit tax returns will look different for your organization than for other kinds of legally incorporated entities filing tax returns. Because most nonprofits don't have to pay the taxes that individuals and companies do, filing taxes for them is relatively simple.
The 501c3 tax-exempt status that legally incorporated nonprofits enjoy means they don't have to pay taxes, and so they aren't actually required to file a nonprofit tax return. But that doesn't mean tax season is a breeze for 501c3 nonprofit organizations. To maintain that 501c3 tax-exempt status, they have to file a Form 990 with the IRS to be in step with state and federal regulations and show the IRS that they're living up to the purpose they were incorporated for.
The process of filing any tax form for incorporated entities, such as LLCs
, Sole Proprietorships
, S corporations
or C corporations
with the IRS can seem daunting, and it's no different with the forms for nonprofits. As with any IRS form, there are some FAQs that you'll want answers to.